Other Car Insurance Coverages

There are many additional types of car insurance coverage that can help you manage financial risks, and it's important to consider your risk profile when choosing insurance options. Opting for minimal auto insurance coverage can make sense when you can afford to cover the costs of an older model car, but if you drive an expensive new vehicle, your financial risks rise accordingly. Other types of car insurance can protect you from many threats.

Less Common Types of Car Insurance Coverage

Some of the less common types of coverage are often inexpensive, but they can provide valuable protection. These coverage possibilities can guard against depreciation, broad-based protection against liability lawsuits, car rental reimbursements, mechanical breakdowns, broken glass, roadside assistance and usage-based insurance. The following coverage options could prove useful in getting you on the road and protecting you from unique threats:

  • Glass coverage — Windshield damage is a big risk, but many policies don't cover the threat.
  • Roadside assistance — This coverage includes providing assistance if you lock yourself out your vehicle, get a flat tire, run out of gas, or need a tow or jump start.
  • Non-owner liability — Sometimes, non-owners need coverage to get their licenses reinstated.
  • Pay-as-you-drive insurance — This coverage can result in big discounts on basic liability, collision and comprehensive coverage. Insurers are allowed to track mileage for people who don't drive much.
  • Mechanical breakdown coverage — This option covers repairs to mechanical systems and the costs of replacement parts. You pay a monthly premium to get coverage similar to what's provided by extended warranties, but you don't have to pay a lump sum upfront.
  • Rental reimbursement — This auto insurance coverage is a good choice for drivers who don't want to pay any out-of-pocket costs.

Insurance Coverage Carryover for Car Rentals

Drivers also face insurance decisions when they rent cars. If you have car insurance for your own vehicle or vehicles, your insurance coverage will usually protect you while driving a rental vehicle, so car rental insurance isn't always necessary. In fact, many credit card companies provide insurance coverage when you use the card to pay for your rental. It's important to check with your insurance company before renting a car to find out if your coverage extends to a rental car.

The best strategy for buying car insurance is to comparison shop, apply for discounts, bundle coverage options and determine your ability to absorb a financial hit.